What is a Broker?
An insurance broker is a licensed, professional insurance intermediary who represents the interests of clients (consumers and businesses) in the purchase of insurance and risk products, and any claims that may arise from an insured event. Whether it’s business, life, home or motor insurance, brokers provide advice and assistance to make sure you’re properly protected.
What does an insurance broker do?
Quite a lot, actually. And certainly a lot more than many people realise.
Around 90% of commercial insurance in Australia is placed by brokers.
The Australian insurance industry is well developed. There are more than 100 companies authorised to write insurance business in this country alone. It’s a competitive market offering a wide variety of products, enhanced by ready available access to the world insurance markets.
Just as business has become more complex and demanding, so has the role of the insurance broker. Today the people who handle the insurance needs of their clients and advise on the best ways they can cover risks are highly qualified and experienced.
They often don’t just organise the best insurance cover for the risk. Many brokers design and develop insurance and other risk management products.
Insurance brokers provide customers with the necessary information to make educated purchases. And they can explain what a consumer needs and what their options are in terms of insurers, policies and prices.
Insurance brokers are also able to take advantage of economies of scale by developing, either individually or in association with other brokers, special facilities for a group of clients seeking the same type of insurance. They are thus able to obtain lower premium rates and wider policy coverage for their clients than they could working alone in the marketplace.
Clients rely on their broker to negotiate with only those companies that are able to deliver the best insurance value. To do this effectively brokers must have a strong relationship with the insurers.
Insurance brokers provide a vital service that is fundamental to Australia’s growth and prosperity. They operate professionally, competently, competitively and transparently. And proudly, insurance brokers represent a vital human link between fast-track technology and caring for the end client.
The ultimate test for any insurance policy is when a claim is made. And most insurers would acknowledge that claims processed through brokers are more readily settled than those without broker involvement.